Financial management plays a critical role in increasing shareholder value and customer satisfaction. The qualitative study involves the survey as the research design and financial managers as participants. The research aims to collect data to establish the effects of financial management on customer satisfaction and shareholder value. Customer satisfaction and shareholder value are some of the main indicators used to measure the prosperity of a business. The two aspects can be enhanced through the implementation of effective financial management (Luo, Wieseke, & Homburg, 2012). Management can harmonize the company's analytical techniques, aspirations and other management processes to ensure that the two key indicators are given priority. In most cases, good financial management reduces the cost of capital and increases the company's net cash flow (Edmans, 2011; Torres & Tribo, 2011). To increase customer satisfaction and shareholder value, a company's financial management should implement approaches that can increase the unit price of its products and result in the sale of more units of the goods it produces. By increasing the unit price of its products, a company is likely to generate more revenue from them to increase shareholder value (Edmans, 2011). This approach should be accompanied by an increase in production capacity resulting in an increased supply of products to the market to meet customer needs and market demand. However, an increase in the unit price of the product is usually not enough. For this reason, financial managers must integrate the approach with other strategies such as reducing unit costs while simultaneously increasing the use of fixed costs. The decrease in half of the paper also depends on customer satisfaction, which influences the market value and position of the organization. How to determine and increase customer satisfaction and shareholder value are some of the key functions of financial management. This paper talks about how financial management can be used to achieve maximum customer satisfaction and shareholder value. Works CitedEdmans, A. (2011). Does the stock market fully value intangible assets? Employee satisfaction and stock prices. Journal of Financial Economics, 101(3), 621-640. Luo, X., Wieseke, J., & Homburg, C. (2012). Incentivize CEOs to build customer-employee-company relationships for greater customer satisfaction and business value. Journal of the Academy of Marketing Sciences, 40(6), 745-758. Torres, A., & Tribo, J. (2011). Customer satisfaction and brand value. Business Research Journal, 64(10), 1089-1096.
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